Comparison Malaysia Property Investment of Labuan Company and Individual Name
Which one suits you? We are glad to provide you the guide to understanding which is the better structure to hold your Malaysia property investment between Labuan Company and Individual Name. Good planning will lead to a smart investor!
Labuan Company as an investment holding company to hold your properties does not attract any tax and no audit reporting annually is required. Labuan Company provides the flexibility of inheritance of simply transfer shares of the Company which is fast and clean especially for foreigners investing in real estate in foreign lands where complications, long process, and disputes may arise in establishing the distribution to the rightful beneficiary. For some complicated cases, it will take a much longer time with possibly leading to freezing of assets during the legal proceeding to unlock the assets.
| Description | Labuan Company | Individual Name | ||
|---|---|---|---|---|
| Ownership Transfer | Simple by way of transfer of shares | The process can be complicated and lengthy thru probate or court | ||
| Bank Financing | Cash purchase | Eligible for a housing loan, subject to banker’s discretion | ||
| Residency Visa In Malaysia | 2 years’ work visa for you and family | Tourist visa or Malaysia My Second Home visa | ||
| Personal Bank A/C | Yes, for all family members for multiple accounts in RM and foreign currencies | Yes, can open a bank account upon showing Purchase Agreement | ||
| Minimum Purchase Price | RM1 million | RM1 million | ||
| Maintenance Cost of Labuan Company | Yearly about USD2,000 | -NA- | ||
| Able to conduct Business | Yes | Need to set up a company to do business | ||
Taxation
For Labuan Company, all income derives from Malaysia’s renting will subject to 24% while under personal name depends on the range of income received (rental, salaries, fee, etc) for the year, net income of more than RM100,000 will be taxed at 28% while those with more than RM2million tax rate will be 30%. Click here to find out more with the comparison between Labuan company and Sdn Bhd company on property investment in Malaysia!
Feel free to contact us at Tricor.klmo@my.tricorglobal.com or call +603-2783 9191 (Labuan Division) for better advice and provide the best recommendation to suit your personal needs as part of the wealth management. Alternatively, please send us your inquiry today to find out if the Labuan entity suitable to meet your objectives in Malaysia.
Our One Labuan Platform easy to elevate your Labuan operation efficiently!
Trade Without Barriers
Tap into ASEAN Market Through Labuan
Labuan Blockchain and Crypto
Labuan Wealth Planning
Labuan Businesses
Labuan Tax Matters
Simplifying Complexities
Property Investment
We are offshore and onshore business advisory expert to assist you in your business set up in Malaysia!
Get advantage being our clients to have free to access for complete advise from us on latest regulations, updates and requirements for your business and residency opportunities in Malaysia anytime, anywhere!
For everything about business investment in Malaysia for foreigners as well as onshore business business expertise, check out our complete information at www.MalaysiaBizAdvisory.com